Before we start this is not FINANCIAL ADVICE. AND IS ONLY FOR ENTERTAINMENT PURPOSES ONLY.
So if you haven't heard the news yet let me catch you up. The SEC said that all other cryptocurrencies other than BTC or Bitcoin are securities. So what does that mean? A security is any financial instrument with a fungible value that can be traded. So how does this relate to crypto? So this means that security laws will apply to every crypto other than Bitcoin. So here is the problem with these regulations. There are over 20,000 cryptos that are almost impossible to regulate. So the SEC is instead regulating the exchanges. So this means that most altcoins are not going to be tradable on exchanges.
Also if an exchange wants to operate inside the USA they have to register with the SEC and comply with all security laws. The SEC has also added people to its cyber unit. Which will be enforcing the laws on crypto. Another problem with the SEC regulating crypto is that there are strongly anti-crypto.
On the topic of how the SEC will regulate Stable Coins. The SEC said that there will be higher scrutiny on stablecoins. After the UST and luna incident, these regs should be stronger and more harmful to the crypto market.
For now, lots of things are unknown and will be determined in the near future as the SEC tries to crack down on crypto. So that's it for me if you have questions leave them in the comment and have a good day.
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